Does age affect car insurance rates?

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Things to know...
  • Younger drivers under the age of 25 may have significantly higher auto insurance rates than older drivers
  • Statistically, the inexperience of younger drivers places them in a high-risk category
  • There are many steps that you can take to lower your insurance rates

Paying your auto insurance premium is a necessity, and this is because auto insurance is required by law in most states.

More than that, car insurance gives you an affordable and convenient way to pay for damages and other expenses if you are involved in an accident or have another mishap.

However, some drivers have rather high premiums, and you may be wondering why your premium is so high.

Some drivers may have heard that younger drivers are charged higher rates. However, you may not be sure if this is true or why it may be true.

With a closer look at how age affects car insurance rates and what you can do about it, you may be able to find a more affordable premium for your coverage. Comparing rates helps you find the best company for your needs. Enter your zip code into our free rate tool to compare!

How Age Affects Car Insurance Rates

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When you request a quote from a car insurance company, numerous factors will be statistically analyzed by the provider. These include:

Statistically, younger drivers under the age of 25 are more likely to be involved in an accident.

This fact holds true for both male and female drivers, but younger men are statistically more likely to be in an accident than younger women. Inexperience behind the wheel as well as a limited driving history are some of the factors that may affect this.

Therefore, many insurance providers charge drivers who are under the age of 25 a higher rate.

Some drivers may simply muddle through and endure a higher premium until they reach this age. Then, they may need to compare rates in order to enjoy savings on their premium.

Drivers can save $859/yr* by comparing car insurance

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– Other Factors That Affect the Cost of Your Car Insurance

Just as your age is statistically analyzed when you request an auto insurance quote, other factors are also analyzed. For example, accident records and auto theft statistics for your zip code will be reviewed.

If you live in an area where more claims are filed, your rates may be higher than they otherwise would be.

Some vehicles are more likely to be stolen or involved in an accident, and your rates may be higher if you are trying to insure one of these vehicles.

For example, vehicles with a higher horsepower engine may have more rapid acceleration, and drivers may drive them more aggressively. Because of this, the statistics related to cars with more horsepower may yield higher insurance rates.

If you are unhappy with your current auto insurance rates, it is important to note that your age may be just one of several factors that may be resulting in an expensive premium.

While you cannot control your age, other insurance-related factors may be within your control.

What to Do If Your Premium Is Not Affordable

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There are several excellent steps that you can take to generate better car insurance rates. Some of these ideas are fast and easy to adopt, and others may require more time and effort.

By combining several of these ideas together, you may be able to get the best rate possible despite your young age.

– Shop for Lower Rates

While all car insurance companies review numerous factors to determine your rates, including your age, they may analyze this data differently.

Some insurers may penalize younger and inexperienced drivers more harshly than others, and they may also review other factors affecting your rates differently.

With this in mind, it makes sense to shop around periodically to find the lowest rates possible. Plan to shop for auto insurance rates every six months to avoid paying a higher premium than necessary.

– Look for Discounts

When you request auto insurance quotes, the providers typically will screen you for discounts that you may qualify for.

These discounts can help you to save money, and you may find discounts for the following:

Because some discounts may require you to take additional steps to qualify, it makes sense to learn as much as possible about the different discounts that are available through various providers.

For example, you may be able to take a driver’s education course to qualify for a great discount through some car insurance companies.

– Trade Your Vehicle In

Spend time researching your vehicle online to learn more about its insurability. If you discover that your vehicle is linked to high insurance rates, it may make sense to trade your vehicle in for a more affordable model to enjoy ongoing financial savings.

Ask your insurance agent for quotes for the top few models you are thinking about buying so that you can find the most affordable vehicle to insure.

– Improve Your Credit Rating

Many younger adults have lower credit scores, and this may be because of a limited credit history, high debt balances, and other factors.

Because lower credit scores and insurance claims are linked, auto insurance companies often review your credit rating to determine your rates.

You can easily review your credit rating today, and you can take steps to improve your rating over the course of the next few months as necessary. For example, if your debt balances are high, you can pay them down to increase your credit scores.

– Move to a Different Location

Factors related to theft and auto accidents in your zip code can affect your insurance rates as well. If you are preparing to move into a new apartment or home soon, ask your insurance agent for zip codes in your area that may be more affordable to live in.

These may be areas that have less traffic and that require a longer commute to work. However, you may also look into moving very close to your workplace and potentially qualifying for a low mileage discount through some providers.

These are the more common ways to save money on car insurance, and they are available to you regardless of your age.

Adjusting your coverage type, limits, and deductible can also result in a lower premium.

If you are unhappy with the cost of car insurance, now is the time to start looking for ways to save money on this expense. Compare car insurance quotes today by entering your zip code below!

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